The Job Retention Bonus aims to provide businesses with extra support when furloughed employees are retained in meaningful employment after the Coronavirus Job Retention Scheme (CJRS) ends on the 31 October 2020.
The Job Retention Bonus is part of the government’s Plan For Jobs initiative which outlines initiatives being provided to support the UK economy. This information is accurate as at 13 August 2020 and does not constitute legal advice.
The bonus is a one-off payment of £1,000 which will be paid to the employer for each employee who has previously been furloughed and the employer has previously submitted a claim for under the CJRS. The employee must be continuously employed by the employer through to the 31 January 2021.
The employee must earn a minimum of £520 a month on average between 1 November and 31 January 2021.
The employer will be able to claim the Job Retention Bonus for all employees who meet specific criteria. Full details of the scheme will be announced by the government at the end of September, but early indicators of the criteria are below:
Further information is expected from the government by the end of September 2020.
A new employer acquiring a company where TUPE applies or PAYE succession rules apply to the change of ownership may be able to claim Job Retention Bonus for any eligible employees.
Eligible employees must meet the above criteria and at the same time, it is the new employer that must have furloughed the new employees and claimed the CJRS grant.
No Job Retention Scheme bonus will be payable for employees TUPE transferred or transferred under PAYE succession rules after the 31 October 2020.
More information will be provided but it is expected that employers will be able to claim the Job Retention Bonus from the 1 February 2021 through a claims portal.
The Job Retention Bonus allows employers to claim £1,000 for each eligible employee. This bonus will be taxable and must be included as income when calculating taxable profits for corporation tax or self-assessment.
To make the claims process as smooth and trouble free as possible it is important for employers to take steps now to ensure that their payroll records are up to date and accurate.
This means ensuring that employee details and wages must be accurately reported on the Full Payments Submissions (FPS) through the RTI reporting system.
Employers must also ensure that their CJRS grant claims have been accurately submitted and that if amendments have been required, that these have been notified to HMRC.
Further information on the Job Retention Bonus scheme will be published by the government at the end of September 2020.
Please note, the information above is correct as of Thursday 13 August 2020 but may be subject to change and some elements of business support are devolved and therefore support may differ in Scotland, Northern Ireland and Wales.
For the latest guidance and professional advice, please contact us or speak to your dedicated Duncan & Toplis adviser.